Delta Energy & Environment Ltd

Registered in Scotland: No SC259964

Registered Office: 15 Great Stuart Street, Edinburgh, EH3 7TS

Micro-CHP: delivering the EU’s energy and climate

objectives

Benefits of decentralised production of heat and power, COGEN

Europe, 25th February 2015

Cate LyonE: cate.lyon@delta-ee.com

T: +44 131 625 3338

www.delta-ee.com

Experts in Heat and Distributed Energy 2

Structure

1. Who is Delta Energy and Environment?

2. Our work for COGEN Europe

3. Micro-CHP: delivering the EU’s energy and

climate objectives

Experts in Heat and Distributed Energy 3

Delta Energy & Environment (‘Delta-ee’)

What Delta-ee offers clients:

Research ServicesMulti-client StudiesBespoke ConsultancySpecialist Summits

What Delta-ee offers clients:

Research ServicesMulti-client StudiesBespoke ConsultancySpecialist Summits

What Delta-ee provides:

Market insight & forecastsTechno-economic analysisCompetitor analysisStrategy & tactics

What Delta-ee provides:

Market insight & forecastsTechno-economic analysisCompetitor analysisStrategy & tactics

A consultancy & research provider specialising in heat and distributed energy

Generation

Demand

Electric Vehicles

Electricity Storage

Connected Homes

CHP

Photovoltaics

Energy Efficiency

Smart Demand

Heat Pumps

Networks

Micro / mini-CHP

Energy Services

Fuel cell

Experts in Heat and Distributed Energy 4

Selected Delta-ee clients

Europe

Energy CompaniesBP LPG * British Gas * Calor Gas * DONG * EDF * EDF Energy

Edison * EDP * Endesa * Energy Networks Association * E.ON

ESB * GasTerra * Gas Natural Fenosa * Gasunie * GDF Suez

Iberdrola * Power NI * RWE * RWE npower * Scottish Power * SSE

SEDIGAS * SHV Energy * Statoil * Vattenfall

Manufacturers

Ariston Thermo Group * BDR Thermea * BEAMA * Bekaert

Bosch TT* Centrax * Ceres Power * Daikin * Cummins * Danfoss *

EADS * ENATEC * Ener-G * GE Jenbacher * Honeywell *

Mondragon * MWM * Philips * Sandvik * Schneider Electric *

Siemens * Topsoe Fuel Cells * Turbomach * Schneider Electric *

Vaillant * Viessmann * Volkswagen

Finance Sector

Berenberg Bank * Credit Suisse * Deutsche Bank * J Leon & Co

KBC Peel Hunt * Modal Capital * Numis Securities * Zetra

International * Nomura * Redburn * Scottish Equitable Partners

Policy / NGOs

Business Council for Sustainable Energy * Carbon Trust * COGEN

Europe * CHPA * Energy Saving Trust * EBRD * ENA * European

Commission * Greenpeace * HHIC * International Energy Agency

Renewable Energy Association * OECD * Sustainable Development

Commission * WLPGA

Asia

Energy Companies

Osaka Gas * JX * ENEOS Globe *

ENNET Corporation

Manufacturers

CFCL * Daelim Industries * Honda

Hitachi Power Equipment Systems

* KD Navien * NGK Spark Plug *

Panasonic * Toshiba Corporation *

Yanmar Energy Systems * TOTO

Finance Sector

Itochu Corporation *

EU-China Energy & Environment

Program

Policy Makers

Advanced Cogeneration and

Energy Utilisation Centre Japan

(ACEJ) * CRIEPI * Japan Gas

Association (JGA)

North America

Energy Companies

BC Hydro * CEATI * Enmax * EPRI * Hydro

One Chevron * Conoco * Keyspan * Southern

California Edison

Manufacturers

AO Smith * Caterpillar * Cummins * Fuji

Electric (US) * General Electric *

UTC Power * Versa Power Systems

GE Energy * Dresser-Rand

Finance Sector

Morgan Stanley

Policy / NGOs

Battelle * World Alliance for Decentralised

Energy COGEN São Paulo * Cogeneration

Association of California * Energy Producers

and Users Coalition * EPRI Solutions *

Natural Resources Canada

Experts in Heat and Distributed Energy 5

Providing a decade’s worth of support and insight

Micro-CHP Research Service (1kWe – 5kWe)

Focus on:

France GermanyJapan NetherlandsItaly South Korea UK USA

Multi-client studies in 5kWe – 25MWe for distributed generation and heat

Country coverage:

European and Global

Experts in Heat and Distributed Energy 6

COGEN Europe Vision Working Group, micro-CHP

Experts in Heat and Distributed Energy 7

Micro-CHP: delivering the EU’s energy and climate objectives

EU targets:CO2 reductions:

20% by 2020

40% by 2030

Renewable energy:

20% by 2020

Increasing energy efficiency:

20% by 2020

EU energy policy

Competitiveness

Environment

Security of supply

Experts in Heat and Distributed Energy 8

What is micro-CHP?

fuelheat

electricity

flue gases

Experts in Heat and Distributed Energy 9

What is micro-CHP?

fuelheat

electricity

flue gases

Engine-based

Internal

combustion

engine (ICE)

Stirling engine

(SE)

Organic

Rankine Cycle

(ORC)

Fuel cell

Proton

Exchange

Membrane

(PEMFC)

Solid oxide

(SOFC)

Experts in Heat and Distributed Energy 10

What is micro-CHP?

fuelheat

electricity

flue gases

Engine-based

Internal

combustion

engine (ICE)

Stirling engine

(SE)

Organic

Rankine Cycle

(ORC)

Fuel cell

Proton

Exchange

Membrane

(PEMFC)

Solid oxide

(SOFC)

Experts in Heat and Distributed Energy 11

1,500

1,700

1,900

2,100

2,300

2,500

2,700

2,900

3,100

3,300

3,500

2015 2020

An

nu

al h

ou

se

ho

ld e

ne

rgy b

ill (

€)

Gas boiler + grid electricity

Wall hung engine micro-CHP(electrical efficiency 14%) +grid electricity

Floor standing fuel cellmicro-CHP (electricalefficiency 40%) + gridelectricity

1. Empowering energy consumers

Mr. Boel, homeowner in

Hamburg, Germany:

"With the fuel cell micro-CHP I was able to cover 72% of my electricity by producing power myself. Compared to before, I save around 1,000 euros a year.”

Source: IBZ, http://www.ibz-

info.de/referenzkunden/baxi-innotech

8% 18%

8% 19%EU goals:

Smart, inclusive,

sustainable growth

Empowered

consumers

Choice and enhanced

welfare

Experts in Heat and Distributed Energy 12

2. Balancing renewables

EU targets:Renewable energy:

20% by 2020

Source: Baxi, 2010

Experts in Heat and Distributed Energy 13

3. Decarbonising energy supply

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

2015 2020

ton

nes C

O2 p

er

year Gas boiler + elec

Wall hung engine micro-CHP(electrical efficiency 14%)

Floor standing fuel cellmicro-CHP (electricalefficiency 40%)

EU targets:CO2 reductions:

20% by 2020

40% by 2030

Increasing energy efficiency:

20% by 2020

EU directives:

Energy Efficiency

Directive

Energy

Performance of

Buildings Directive

40%total energy use

and

36% CO2 emissions

from buildings

Experts in Heat and Distributed Energy 14

4. Energy security

EU targets:

Increasing energy efficiency:

20% by 2020

EU energy policy:

Competitiveness

Environment

Security of supply

30%

Experts in Heat and Distributed Energy 15

4. Energy security

EU targets:

Increasing energy efficiency:

20% by 2020

EU energy policy:

Competitiveness

Environment

Security of supply

30%

Experts in Heat and Distributed Energy 16

5. Fostering economic growth, and job creation through innovation

120,000people

employed in the

EU heating

industry

over 8 millionboilers sold

annually in the

EU

Micro-CHP is one of the heating industry’s next generation products

worth over€20 billion/yr

Experts in Heat and Distributed Energy 17

5. Fostering economic growth, and job creation through innovation

120,000people

employed in the

EU heating

industry

over 8 millionboilers sold

annually in the

EU

Micro-CHP is one of the heating industry’s next generation products

EU Innovation Union targets:

3% EU GDP on R&D in 2020

3.7million jobs by 2025

€795 billion increase in GDP

by 2025

worth over€20 billion/yr

Experts in Heat and Distributed Energy 18

Contact

Scott Dwyer

Delta Energy & Environment

15 Great Stuart Street

Edinburgh

EH3 7TS

UK

scott.dwyer@delta-ee.com

+44 (0)131 625 3213

Cate Lyon

Delta Energy & Environment

15 Great Stuart Street

Edinburgh

EH3 7TS

UK

cate.lyon@delta-ee.com

+44 (0)131 625 3338

Thank you for listening.